Commercial Space Licence Agreement

COMMERCIAL SPACE LICENCE AGREEMENT This AGREEMENT is made on [effective_date] between [licensor_name], of [licensor_address] (the "Licensor"), and [licensee_name], of [licensee_address] (the "Licensee"). 1. GRANT OF LICENCE 1.1 The Licensor grants the Licensee a bare permissive licence to use and occupy the premises at [premises_address] (the "Premises") for the purpose stated below. 1.2 THE PARTIES EXPRESSLY RECORD that this Agreement creates a licence within the meaning of Section 52 of the Indian Easements Act, 1882, and NOT a lease or tenancy. Juridical possession remains with the Licensor at all times. 2. PERMITTED USE The Premises shall be used solely for [business_purpose], and for no other purpose. The Licensee shall not carry on any unlawful, hazardous or offensive trade on the Premises. 3. TERM The licence is granted for [term_months] months from [start_date], renewable by fresh written agreement with the fee escalated by [escalation_percent]%. 4. LICENCE FEE AND DEPOSIT 4.1 The Licensee shall pay Rs. [monthly_fee] per month, in advance, by the fifth day of each month. 4.2 An interest-free refundable deposit of Rs. [security_deposit] has been paid, refundable within thirty days of vacating after adjusting dues and the cost of damage beyond normal wear and tear. 4.3 Electricity, water and other utilities shall be borne by the Licensee on actuals. Goods and Services Tax, where applicable on the licence fee, shall be payable additionally. 5. LICENSEE'S OBLIGATIONS 5.1 To obtain and maintain at its own cost all licences, registrations and permissions required for its business, including trade licence, shops and establishments registration, GST registration and fire clearance as applicable; 5.2 To maintain the Premises in good condition and to make no structural alteration without written consent; 5.3 Not to sublet, assign or part with possession, nor permit any third party to occupy the Premises; 5.4 Not to claim any tenancy right or protection at any time; 5.5 To comply with the rules of the building, complex or association concerned; 5.6 To permit the Licensor to inspect on reasonable prior notice. 6. LICENSOR'S OBLIGATIONS 6.1 To permit the Licensee undisturbed use of the Premises during the term; 6.2 To bear property tax, municipal levies and structural repairs; 6.3 To hand over the Premises in usable condition on the commencement date. 7. SIGNAGE The Licensee may display signage in the manner permitted by the building rules and by the municipal authority, at its own cost, and shall remove it on expiry. 8. TERMINATION 8.1 Either party may terminate on [notice_months] months' written notice. 8.2 The Licensor may revoke immediately for non-payment of the fee for two consecutive months, for breach of any material term, or for unlawful use of the Premises. 8.3 On expiry or revocation, the Licensee shall vacate and restore the Premises in the condition received, normal wear and tear excepted, and remove its fixtures. 9. NO TENANCY The Licensee acknowledges that no tenancy, sub-tenancy or interest in the Premises is created by this Agreement, by continued occupation, or by acceptance of the fee. 10. REGISTRATION AND STAMP DUTY Stamp duty is levied at rates prescribed by the State in which the Premises are situated and varies between States. Certain States, including Maharashtra, require registration of leave and licence agreements irrespective of duration. Confirm the position locally before execution. 11. GOVERNING LAW Governed by the laws of India, with the courts having jurisdiction over the Premises having exclusive jurisdiction. LICENSOR LICENSEE [licensor_name] [licensee_name] WITNESSES 1. Name: ______________________ Signature: ______________ 2. Name: ______________________ Signature: ______________